More Evidence Initiative 423 Would Be A Disaster
McCook Gazette Editorial
Wednesday, October 18, 2006

Initiative 423 seems inviting at first glance – limiting the growth of
state government and giving voters the final say over large tax increases.

But evidence is mounting that it would be a disaster for Nebraska, like it
was in Colorado where voters have suspended it for five years to allow the
state's economy to recovery.

The latest information comes from a report from the Center for Rural
Affairs, which includes some sobering numbers for area schools -- McCook
Public Schools in particular.

" Initiative 423 has the potential to place school districts, communities, Nebraska families and Nebraska children in a public school districts, communities, Nebraska families and Nebraska children in a public financing box from which there appears to be limited escape routes – ask taxpayers to increase school property taxes, adjust school property tax limits upward, or accept some of the more poorly funded public schools in the nation," said Jon Bailey, Center for Rural Affairs program director and author of the report.

According to the study, had Initiative 423 existed for the 2006-07 school year alone, alone, the Maywood Public Schools would have lost $16,594 in state aid, Eustis-Farnam Public Schools $29,712, Medicine Valley $62,896, Southwest Public Schools $78,725, Hitchcock County Unified Schools System $21,578, and McCook Public Schools a whopping $274,573 in state aid.

Had Initiative 423 been in effect since 1996, state general fund appropriations would have been from $542 million to $643 million less this fiscal year, dropping state aid to local school districts from 8 percent to as much as 25 percent below current levels. That in turn would affect per-pupil spending such that Nebraska's ranking could have dropped from its current middle-of-the-pack 21st to 30th under the best-case scenario, or as low as 48th under the worst.

"Likewise, the percentage of local school funding received from state aid would have dropped to 35 percent under the best case scenario to as low as 20 percent, driving Nebraska's ranking among other states to as low as 47th or 50th," Bailey said.

Initiative 423 has its roots in the same frustration that has resulted in misguided efforts like the term limits that are hurting the quality of state government in Nebraska. Activists from both sides should get involved in the political process at all levels and all times, not just vote for measures like Initiative 423 which will amend the constitution to put the state on autopilot with treacherous weather ahead. Voters should elect good people and let them do their jobs.

Nebraska's constitution already requires a balanced budget. That's enough.

Initiative 423 should be defeated.